Correlation Between Banque Cantonale and IShares Corp
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and IShares Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Banque Cantonale and IShares Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banque Cantonale du and iShares Corp Bond, you can compare the effects of market volatilities on Banque Cantonale and IShares Corp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Banque Cantonale with a short position of IShares Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and IShares Corp.
Diversification Opportunities for Banque Cantonale and IShares Corp
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Banque and IShares is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale du and iShares Corp Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Corp Bond and Banque Cantonale is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Banque Cantonale du are associated (or correlated) with IShares Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Corp Bond has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and IShares Corp go up and down completely randomly.
Pair Corralation between Banque Cantonale and IShares Corp
Assuming the 90 days trading horizon Banque Cantonale du is expected to generate 0.92 times more return on investment than IShares Corp. However, Banque Cantonale du is 1.08 times less risky than IShares Corp. It trades about 0.04 of its potential returns per unit of risk. iShares Corp Bond is currently generating about 0.0 per unit of risk. If you would invest 9,786 in Banque Cantonale du on September 3, 2024 and sell it today you would earn a total of 1,264 from holding Banque Cantonale du or generate 12.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banque Cantonale du vs. iShares Corp Bond
Performance |
| Timeline |
| Banque Cantonale |
| iShares Corp Bond |
Banque Cantonale and IShares Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and IShares Corp
The main advantage of trading using opposite Banque Cantonale and IShares Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, IShares Corp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in IShares Corp will offset losses from the drop in IShares Corp's long position.| Banque Cantonale vs. Cicor Technologies | Banque Cantonale vs. Logitech International SA | Banque Cantonale vs. Glarner Kantonalbank | Banque Cantonale vs. Schweizerische Nationalbank |
| IShares Corp vs. iShares Corp Bond | IShares Corp vs. iShares Emerging Asia | IShares Corp vs. iShares MSCI Global | IShares Corp vs. iShares VII PLC |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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